Exchange Rate Pass-Through May Be Defined As

question 14

Multiple Choice

Exchange rate pass-through may be defined as:

• A) the bid/ask spread on currency exchange rate transactions.
• B) the degree to which the prices of imported and exported goods change as a result of exchange rate changes.
• C) the PPP of lesser-developed countries.
• D) the practice by Great Britain of maintaining the relative strength of the currencies of the Commonwealth countries under the current floating exchange rate regime.

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Definitions:

Codeine

An opiate used to treat pain, as a cough suppressant, or occasionally in the treatment of diarrhea.

Neurotransmission

The process by which nerve cells (neurons) communicate with each other through the exchange of chemical messengers called neurotransmitters.

Amplitude

The height of a wave crest, used (in the case of sound waves) as a measure of sound intensity.

Hertz

The unit of frequency in the International System of Units (SI), representing one cycle per second.